
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Compute the contribution margin ratio

Transcribed Image Text:The following information relates to the only product sold by Marlin
Technologies:
Sales price per unit
Variable cost per unit
Fixed costs per year
$50
$30
$250,000
Units sold during current year 12,000 units
A. Compute the contribution margin ratio and the dollar sales volume
required to break even.
B. Assuming the company sells 12,000 units during the current year,
compute the margin of safety (in dollars).
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